Enthusiasm for altcoins may be waning, says JPMorgan
JPMorgan shared this wariness about altcoins in a note to investors, which was reported by Business Insider. According to the institution, the rush to non-fungible tokens (NFTs) and decentralized finance (DeFi) has carried some altcoins other than Ether (ETH). Cardano’s ADA hit an all-time high this week, for example, and Solana’s SOL broke into the top 10 most-capitalized cryptocurrencies, surpassing Dogecoin (DOGE).
But would this be short-lived? JPMorgan believes that the cryptocurrency market, and altcoins in particular, has become ” frothy “. Altcoins are said to be buoyed by bubbles, which has allowed them to gain momentum against Bitcoin. According to data from CoinMarketCap, altcoins now account for 56% of total cryptocurrency capitalization. They still only accounted for 51% at the end of July.
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A trend that will reverse?
If we look at trading volume, the difference is even clearer: altcoins currently account for 33%, compared to 22% at the beginning of August. But according to JPMorgan, this will only be temporary:
” The share ofaltcoinsseems quite high when compared tohistoricallevels, and we think it’s more likely to be bubbles and retail investor enthusiasm , Rather than a reflection of a structural uptrend.. »
In any case, it is certain that altcoins remain in the party for the time being. Smart contract platforms in particular are attracting interest from buyers. The inevitable Ether (ETH) has managed to cross the threshold of $ 3,700, and could sail to $ 5,000 in the coming days. Case to be followed thus…
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About the author: Marine Debelloir
Associate Editor on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that come from blockchain and I love digging up the juiciest news to share with you.
All articles by Marine Debelloir.